Domestic Ultra-High Power Graphite Electrode Prices Under Pressure

This week, domestic prices of ultra-high power graphite electrodes have been relatively weak. Compared to the previous week, prices have dropped by 800 yuan per ton. The quoted price for φ450 ultra-high power graphite electrodes is 17,500-18,000 yuan per ton, while for φ600, it is 21,000-21,500 yuan per ton. Some transactions have been conducted at lower prices, with a difference of over 1,000 yuan per ton compared to the market price. 

In the downstream sector, the average capacity utilization rate of 87 independent electric arc furnace steel mills nationwide is 66.67%, a decrease of 1.76 percentage points compared to the previous period and a decrease of 4.36 percentage points compared to the same period last year. The Eastern China region has seen a significant decline, while the Southwest and South China regions have experienced a slight decrease. The North China region has shown a significant increase. The blast furnace capacity utilization rate of 247 steel plants is 81.10%, a decrease of 0.59 percentage points compared to the previous week and a decrease of 1.51 percentage points compared to last year. The blast furnace iron production capacity utilization rate is 89.03%, a decrease of 0.46 percentage points compared to the previous week and an increase of 0.75 percentage points compared to last year. Electric furnaces are operating at a loss of 210.52 yuan per ton, while blast furnaces are making a profit of 10.06 yuan per ton. Steel prices have stabilized and rebounded, leading to a turnaround in blast furnace profits. However, the reduction in crude steel production puts pressure on upstream raw materials, resulting in bearish factors for ultra-high power graphite electrodes.

In terms of raw materials, this week witnessed stable operation of Jinxi coking coal, Daqing coking coal, and needle coke. International crude oil prices have declined, indicating a bearish outlook for raw materials. Domestic petroleum coke production has slightly decreased, while port resources continue to rise. Insufficient support from positive factors in downstream demand has led to a pessimistic trend for low-sulfur coke, which affects ultra-high power graphite electrodes. It is expected that domestic prices of ultra-high power graphite electrodes will remain weak and stable in the short term. To learn the latest reports on GE market, feel free to contact us.